Sacramento-California Watch, a nonprofit and independent investigative reporting team, published on May 13 on its website a lengthy story alleging that nitrate contamination of groundwater is spreading in California due to “lax regulatory efforts.” The story cites nitrogen fertilizer use on farmland, animal manure, wastewater treatment plants, and leaky septic systems as the causes, claiming that the number of wells that exceeded the health limit for nitrates jumped from nine in 1980 to 648 in 2007. “Nothing is being done to regulate the use of the leading source of nitrate pollution in many regions of the state – nitrogen fertilizer,” the story states, claiming nitrate levels in groundwater are at their highest in the southern Central Valley, eastern San Joaquin Valley, Imperial Valley, and Salinas Valley. “Farmers and companies are urged not to degrade groundwater but are mostly left to employ voluntary strategies to comply.” The story says a number of strategies have been considered to combat the nitrate problem, including installing mandatory groundwater-monitoring wells on farms or establishing stricter regulations for fertilizer use, but regulators instead are focused on other more pressing water quality issues in the state. “On the scale of things we deal with, while nitrates is certainly a concern and we’re managing for it, I don’t rank it high up there as something that makes me stay awake at night,” Darrin Polhemus, deputy director of the State Water Resources Control Board’s division of water quality, is quoted as saying. That sentiment was echoed by Rich Cornett, director of communications for the Western Plant Health Association (WPHA). “There is no regulation being considered,” Cornett told Green Markets. “Yeah it’s a problem, but nothing is being done at the present time, and there are so many other problems that California is tackling right now. Nitrates in groundwater isn’t topping the list at this point.” Cornett said WPHA is focusing on the problem, however, noting that WPHA President and CEO Renee Pinel will be attending a meeting on the issue in early June. “We will have an official industry response within the next three weeks,” Cornett said.
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N.Y. puts up $500K for runoff control
Albany, N.Y.-New York state is committing $500,000 to a new grant program aimed at helping farmers control runoff of phosphorus and other nutrients and prevent them from entering the southern end of Lake Champlain. The funds Attorney General Andrew Cuomo secured in a court-ordered settlement with American Electric Power will assist farmers in the Southern Champlain Valley to further improve operations and reduce stormwater discharges from their land. “This important investment in New York’s future will help sustain the Champlain Valley’s agricultural economy while preserving one of the state’s most majestic natural resources,” said Cuomo. “By dedicating these funds, we will help support local farmers who are working to improve their operations while being responsible stewards of the environment.” The funding is expected to be used by farmers to better control stormwater runoff from plowed fields, milk houses, manure storage areas, and barnyards; develop nutrient management plans that help avoid applying excess fertilizers to farmlands; and preserve buffers of vegetation that serve to intercept and remove nutrients from runoff before they reach the lake. Dean Norton, president of the New York Farm Bureau, said, “We are grateful to Attorney General Cuomo for making funds available to our farmers to bolster the efforts they are already taking to protect the precious waters of Lake Champlain. We commend the Attorney General for helping our family farms.”
Prime Lube enters DEF market in east, Canada
Carteret, N.J.-Prime Lube, one of the largest distributors of lubricants and anti-freeze in the Mid-Atlantic, is entering the diesel exhaust fluid (DEF) market, partnering with Germany’s Kruse Group to produce and distribute BlueSky DEF in 12 states, the District of Columbia, and two Canadian provinces. As part of the arrangement, Kruse will provide Prime Lube with the manufacturing equipment and automotive grade urea to produce BlueSky DEF for sale to Prime Lube’s fuel and lubricant distributor network throughout the Mid-Atlantic. Prime Lube will begin production of BlueSky DEF in June. The company is already distributing Kruse-manufactured DEF. A series of 20-minute introductory sessions was presented to the fleet management industry at the energy expo last month in Atlantic City.
Navistar, EPA resolve SCR dispute
Warrenville, Ill.-Navistar International Corp. and the U.S. Environmental Protection Agency (EPA) have reached an agreement resolving Navistar’s appeal in federal courts over the agency allowing SCR-equipped diesel trucks to operate for extended periods without NOx emissions control and certifying SCR engines as meeting NOx emission requirements when they do not. According to Navistar, EPA has promised to hold a public workshop or hearing on those policies, which the agency was accused of adopting without the required public process in reliance on input from SCR engine makers. The agreement provides that EPA will “engage in a public process to reexamine its policies for future 2011 and later model year engines,” during which it will “provide a thorough review of EPA’s policies regarding operation of SCR-equipped engines.” EPA also has promised to “ensure, among other things, that SCR-equipped heavy duty diesel engines are designed to properly control emissions as required under applicable regulations.” Navistar had asked the United States Court of Appeals in Washington, D.C., to void those polices because of the irregularities in their adoption.
Algae used to extract N and P from manure
Beltsville, Md.-An Agricultural Research Service scientist has found that algae already being eyed for biofuels could be put to work right away to produce nitrogen and phosphorus from livestock manure and provide a way to reduce farmland runoff into the Chesapeake Bay. In 2003 Microbiologist Walter Mulbry at the ARS Environmental Management and Byproduct Utilization Research Unit here in the Chesapeake Bay watershed started setting up outside dairy barns four 100-foot algal turf scrubber raceways covered with nylon netting where the algae could grow. A submerged water pump at one end circulated a mix of fresh water and raw or anaerobically digested dairy manure over the algae. Within two-to-three weeks the system supported thriving colonies of green filamentous algae. For three years, from April until December, Mulbry and his partners harvested wet algae every four to 12 days, dried it, and then analyzed the dried biomass for nitrogen and phosphorus levels. His results indicate that the system recovered 60 to 90 percent of the nitrogen and 70 to 100 percent of the phosphorus from the manure effluents. They also calculated that the cost for this capture was comparable to other manure management practices – around $5 to $6 for each pound of nitrogen that was recovered, and around $25 for each pound of phosphorus that was recovered.
Zoo selling animal droppings for fertilizer
Columbia, S.C.-Riverbanks Zoo and Garden officials say it’s a great way to take a load off by selling for use as fertilizer composted droppings trademarked “comPOOst” produced by the elephants, giraffes, and zebras. “By taking a virtually unusable waste product and turning it into something that is beneficial to Riverbanks, the community, and the environment, we are being good stewards of the earth,” said John Davis, curator of mammals and manager of the comPOOst operation. May 1 was the first day of sale, but gardeners were able to pre-order online, and pint-size and two-gallon buckets will be available on the plant carts at the zoo and garden entrances throughout the year. “The first sale was a trial run, and we hope to host bulk sales at least four times per year,” said Davis. He said the comPOOsting process takes about three months, producing approximately 1,500 pounds each day for the comPOOst pile, 75 percent of which comes from Riverbanks’ four African elephants.
EPA tightens controls on use of fumigants
Washington-The U.S. Environmental Protection Agency (EPA) has tightened restrictions for aluminum and magnesium phosphate products after the deaths of two young sisters in Utah in February. EPA is now requiring clearer label directions and precautions and is strictly prohibiting the chemicals’ use in residential areas in phosphine fumigants, which are highly toxic pesticides and should be handled only by specially trained pesticide applicators. The products must only be used outdoors for control of burrowing pests, and only on agricultural areas, orchards, non-crop areas, golf courses, athletic fields, parks and recreational areas, cemeteries, airports, rights-of-way, earthen dams, and other non-residential sites. Products must not be applied in a burrow system that is within 100 feet of a building that is or may be occupied by people or domestic animals. This buffer zone had previously been 15 feet.
Management Briefs
On May 19 Intrepid Potash Inc. announced several management changes, all of which were effective immediately. Robert Jornayvaz III has become executive chairman of the board and has transitioned from his role as CEO. David Honeyfield, executive vice president, CFO, treasurer, and secretary, has been promoted to president and will continue to serve as CFO and treasurer. Hugh Harvey Jr., chief technology officer and a member of the board of directors, has become executive vice chairman of the board and has transitioned from his role as chief technology officer.
Jornayvaz and Harvey remain Intrepid’s largest stockholders, with each owning approximately 20 percent of the issued and outstanding common stock of Intrepid.
As executive chairman of the board, a newly created position, Jornayvaz will continue to be Intrepid’s principal executive officer, but will turn over certain day-to-day duties to Honeyfield as president. Intrepid says this transition of duties will permit Jornayvaz to focus on strategic matters for Intrepid, especially matters relating to long-term corporate growth opportunities, sales and marketing, mineral leasing, and government affairs. Jornayvaz will continue to represent Intrepid in connection with Intrepid’s involvement with industry trade organizations.
As president, Honeyfield will report directly to Jornayvaz and will, among other things, be responsible for day-to-day business operations and the execution of capital investment projects. In addition, Honeyfield will continue to have his same responsibilities as CFO and treasurer.
As executive vice chairman of the board, a newly created position, Harvey will advise and collaborate with management on various matters relating to the operations and technology of Intrepid. With the recent hiring of John Mansanti, vice president of operations, the day-to-day operations and technical implementation of the capital investment program have been transferred to Mansanti.
Jornayvaz and Harvey will continue to be employees of Intrepid and will continue to work out of Intrepid’s headquarters in Denver, Colo.
“The management changes announced today reflect the natural evolution of Intrepid and the strength of the senior management team that we have hired and developed over the last several years,” said Jornayvaz. “Intrepid is at a point in its development where the successful execution of strategic capital projects is the most important part of our organic growth strategy. With the planned implementation of our Langbeinite Recovery Improvement Project, the planned development of the HB Mine as a solar solution mine, and our numerous other capital projects, Intrepid is poised to increase recoveries and production, which we expect to lower our per ton operating costs. Dave Honeyfield has demonstrated through his leadership and management skills that he is the right person to execute our well-defined strategic plan. Moreover, Dave’s 20 years of professional experience working with companies operating in extractive industries gives him the right background to be successful as president of Intrepid. Together with the other members of our management team in Denver, Carlsbad, Moab, and Wendover, I am confident in Dave’s ability to lead the day-to-day operations at Intrepid and to successfully execute on our strategic capital projects.”
Intrepid is the largest producer of potash in the U.S. and is dedicated to the production and marketing of potash and TrioTM, a product produced from langbeinite ore. Intrepid owns five active potash production facilities – three in New Mexico and two in Utah.
The Mosaic Co. announced May 20 that Steve Paxton, vice president of internationals sale for Mosaic and president of PhosChem, will retire from Mosaic and PhosChem effective June 30, 2010. Paxton has led the development of Mosaic’s international sales presence since the founding of the company in 2004.
Paxton began his career in the crop nutrient industry with IMC Global, a Mosaic predecessor company, in 1975 as an account representative. Three years later he transferred to the international division as assistant sales manager in Singapore. Over the course of his career he held many positions in the international realm, and has served on the boards of Canpotex, Coromandel Fertilizers in India, and others. He became president of PhosChem in 2005, where he has been instrumental in expanding the reach of Mosaic’s international sales.
Gord McKenzie, director of international sales for Mosaic, will be assuming Paxton’s responsibilities at Mosaic beginning June 30, 2010.
“Steve has played a central role in the growth of Mosaic, particularly in the area of international sales,” said Jim Prokopanko, Mosaic president and CEO. “One of his many significant accomplishments has been the development of long-term relationships with key customers in Latin America, Asia, and Australia. His impact at Mosaic has been impressive – we thank him for his many contributions over the years.”
Vladislav Baumgertner will resign his post as Uralkali’s director general effective June 30, 2010. As of July 1, 2010, this position will be taken by Denis Morozov, who will also retain his current posts of president and CEO. He will assume all key managerial responsibilities.
Morozov has been president since February 2010 and has been with Uralkali since 2004. He previously worked for Yukos and ABB Group, and in the banking sector. Morozov has an economics degree from Moscow State University, as well as a diploma with honors in law. He also graduated from the Swiss Banking School and completed postgraduate studies at the Moscow State Institute of International Relations, receiving a PhD in economics.
Uralkali’s board said the change was planned when Morozov became president, and is part of the company’s strategy to increase management efficiency. The board said it greatly appreciated Baumgertner’s contribution to the development of the company during the past seven years as an executive.
Market Watch
The Week in Fertilizer Stocks
| Producer | Symbol | Price | Week Ago | Year Ago |
| Agrium | AGU | 52.61 | 57.43 | 51.38 |
| CF Industries | CF | 66.54 | 72.24 | 81.40 |
| Intrepid Potash | IPI | 24.16 | 27.27 | 33.32 |
| Mosaic | MOS | 44.97 | 48.03 | 56.82 |
| PotashCorp | POT | 96.97 | 102.41 | 114.23 |
| Terra Nitrogen | TNH | 70.00 | 79.37 | 118.98 |
| Distribution/Retail | ||||
| Andersons Inc. | ANDE | 31.86 | 35.77 | 22.75 |
| Deere & Co. | DE | 56.67 | 59.88 | 44.33 |
| Scotts | SMG | 42.90 | 46.88 | 34.88 |